Carbon taxes need to be re-invested in new technology to support emissions reduction
Dennis Darby, President & CEO stated:
“Today’s announcement by the federal government that only a small proportion of carbon tax revenue will be recycled back into businesses, is a major concern for Canada’s manufacturers. CME had strongly recommended that carbon tax revenues be available for reinvestment into those industries who pay. Recycling of these taxes back into industry would have supported investment into new technologies that would both help Canada reduce GHG emissions and would make manufacturers more competitive globally.
Canada already has a significant problem attracting investment from both foreign and domestic sources. The federal carbon pricing system as it is structured further weakens our investment position by adding costs to business and providing no tax relief or support for emissions reductions.
Canadian manufacturers are leaders in reducing emissions at home and are setting world-class benchmarks for environmental performance. The best, and proven, solution for reducing emissions remains investment in new technology. The federal government needs to support investment to create a well-balanced carbon tax plan that supports both environmental and economic objectives.
CME is again calling on the government to support investment in Canadian industry by using the carbon taxes paid by companies to create investment support mechanisms that are aimed at improving productivity and innovation, and reducing emissions.”
About Canadian Manufacturers & Exporters
Since 1871, Canadian Manufacturers & Exporters has been helping manufacturers grow at home and thrive around the world. In 2016, CME released Industrie 2030 – a roadmap for doubling Canadian manufacturing activity by 2030. Our focus is to ensure the sector is dynamic, profitable, productive, innovative and growing. We aim to do this by strengthening the labour force, accelerating the adoption of advanced technology, supporting product commercialization, expanding marketplaces and, most importantly, ensuring a globally-competitive business environment. CME is a member-driven association that directly represents more than 2,500 leading companies who account for an estimated 82 per cent of manufacturing output and 90 per cent of Canada’s exports.
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